Important Information to Consider When Buying Farm Land
Considering buying farm land? Strong commodity prices, low interest rates and a positive growth outlook for agriculture tend to increase the demand for farm land by farmers and investors alike, both within the province and from without.
Be aware that The Saskatchewan Farm Security Act (Act) places restrictions on farm land ownership in Saskatchewan. To own land one must be:
- A Canadian citizen;
- A Permanent resident of Canada; or,
- A 100% Canadian-owned entity (corporation), partenership, syndicate, joint venture, co-operative or association) whose shares are not traded on the stock exchange, i.e. ownership interests are privately held.
Further, in addition to ownership the Act restricts leasing, having any other interest in farm land that would normally accrue to the owner of farm land. Violating or failing to comply with the Act can result in fines and divesture of ownership. However, there is an application process to apply for exemption. The Farm Land Security Board reviews these applications and will provide an exemption if it is satisfied that it is appropriate to do so.
For more detailed information go to www.farmland.gov.sk.ca or call the Farm Land Security Board at 306-787-5047.
Please contact MacKay & McLean for a free consultation and to discuss any concerns or answer questions you have on real estate and property law
